Barclays announced that it has decided to exits the Net-Zero Banking Alliance (NZBA), marking the second UK-based bank to withdraw from the UN-backed coalition dedicated to advancing global net zero goals through their financing activities, after the departure last month of HSBC.
The departures of Barclays and HSBC follow the exit of all major Wall Street banks, as well as their Canadian peers earlier this year, after members of the group started to come under significant pressure, particularly from Republican politicians in the U.S., who have been warning financial institutions including banks, insurers, asset owners and investors of potential legal violations from their participation in climate-focused alliances and of plans to exclude the companies from state business, as part of a broader anti-ESG political campaign. A few other major banks have also recently announced exits including Australia’s Macquarie, and Japan’s Sumitomo Mitsui.
In a statement released by Barclays announcing its exit, the bank said that “with the departure of most of the global banks, the organisation no longer has the membership to support our transition.”
The statement reiterated Barclays’ commitment to its “ambition to be a net zero bank by 2050,” and that it was maintaining its goal to mobilize $1 trillion in sustainable and transition finance by 2030, as well as its financed emissions targets. Earlier this week, Barclays revealed that it earned approximately £500 million (USD$660 million) in revenues from sustainable and transition finance activities in 2024, and that it has reached cumulative volumes of $220.2 billion towards its $1 trillion goal, with activity accelerating over the first half of 2025.
In the statement, Barclays added:
“We continue to work with our clients on their transition, finance the transition and scale climate tech, while helping to ensure energy security for our customers and clients. “
The decision marks the latest blow to the NZBA, coming even after its members agreed in April 2025 to a series of significant changes to the alliance’s framework and principles, including eliminating a mandatory requirement for banks to align lending and capital markets activities with the goal of limiting global warming to 1.5°C.
In a statement provided to ESG Today following Barclays’ announcement, an NZBA spokesperson said:
“NZBA remains focused on delivering on the future vision overwhelmingly endorsed by member banks a few months ago. It is supporting its members to lead on climate by addressing the barriers preventing their clients from investing in the net-zero transition. As the largest global initiative specifically focused on supporting climate mitigation action by banks, NZBA is uniquely positioned to provide the practical support banks need to grasp the opportunities and manage the risks of the move to net zero.”
Sustainable investment-focused groups criticized the announcement, with Jeanne Martin, Co-Director of Corporate Engagement at ShareAction calling the decision “incredibly disappointing and a step in the wrong direction.”
Martin added:
“As the financial risks of global heating multiply and climate impacts like heatwaves, floods and extreme weather events become more intense and frequent, we cannot afford half-measures. Responsible investors will be watching closely and raising the pressure on the bank to protect long-term economic prosperity and the livelihoods of people everywhere.”
